Another analyst has said that Apple is planning on releasing an iPhone with a price point of US$99 after subsidies, with this newest prediction coming from RBC's Mike Abramsky. In a research note to clients, Mr. Abramsky said that Apple will achieve this goal by offering an iPhone with few features than the current iPhone 3G.

Such a device, according to Mr. Abramsky, would still be an iPhone with multitouch-capable display and the ability to access the Internet (and the App Store), but that it would not support 3G Internet networks, and might have a data cap in exchange for lower data fees. He also said it might have even lower resolution camera -- the current iPhone features a paltry 2 megapixel camera.

The analyst expects Apple to be able to sell 20 million to 30 million iPhones at the $99 price point, but said that it would eat into both current iPod and iPhone sales. Figuring a subsidy of roughly $200 from the phone companies, Mr. Abramsky thinks it would lower iPhone gross margins from approximately 50% to the 35%-37% range.

Accompanying this lower-price iPhone, Mr. Abramsky thinks Apple will release a new revision of the iPhone 3G with video capabilities, a higher resolution camera, and up to 32GB of memory for the same price points as the current iPhone line.

Both new iPhone models would be released in the June or July time frame, and he expects Apple to be able to grab 20% of the smart phone market with this combined iPhone product line.